London Councils’ Transport and Environment Committee

Flood Risk Management

An update and guide on how to access funding

Item No: 12

Report by: Nishma Malde Job title: Head of Transport and Environment

Date: 24 October 2013

Contact Officer: Nishma Malde

Telephone: 020 7934 9945 Email: nishma.malde@londoncouncils.gov.uk

Summary: This paper provides an update on flood risk management and a guide on how local authorities can access funding.

Recommendations: The Committee is asked to:

1. Note progress and discuss what further measures can be taken to encourage uptake of funding by boroughs.

2. Advise their Council Leaders of the upcoming flood levy vote at Thames Regional Flood and Coastal Committee (RFCC) on the 20 November.

3. Seek guidance from the Leaders Committee on 12 November to inform RFCC representatives voting at Thames RFCC on the 20 November.

Background

1. A paper was presented to TEC Executive on 18 July setting out details about partnership working for flood risk management. The full paper is available here: http://www.londoncouncils.gov.uk/committees/agenda.htm?pk_agenda_items=5382

2. One of the outcomes of the discussion on 18 July was, that it would help boroughs to understand how the funding announced in the Spending Review 2013 (SR13) could be accessed. As part of SR13, the government announced a protected six year capital settlement to improve flood management infrastructure and that it will make available nationally £370m in 2015/16 and the same in real terms each following year, rising to over £400m in 2020/21.

3. It is vital that London gets its fair share of the funding available as compared with the rest of the country the Thames region, including London, has the highest level of flood risk - namely surface water and tidal and river flooding. Further, London has a very significant proportion of the total properties at risk in the Thames region: • 1.3 million properties in London are at risk from surface water flooding(^1) • 534,807 properties in London are at risk from tidal and/or river flooding(^2)

4. As well as flooding properties, flooding also poses significant risks to critical infrastructure including to major road and railway networks, the underground, hospitals, water and electricity supply and sewage treatment facilities.

Progress

5. On 11 September, Members of the TEC Executive visited the Thames Barrier and were presented with a draft “how to access funding guide” by the Environment Agency. This guide has since been revised and is attached at Annex 1.

Role of Elected Members

6. Elected Members are vital to providing strategic leadership and direction for their own local areas as councils have a statutory duty as Lead Local Flood Authorities (LLFAs). They also influence the work of their sub-regional Flood Risk Management Partnerships and the Thames Regional Flood and Coastal Committee (RFCC).

7. LLFA Members are the only RFCC Members who are permitted to vote annually to set the amount of local levy payable to the RFCC for use by all Risk Management Authorities. This locally generated funding can be used to fund a wide range of projects to reduce flood risk.

8. The majority of the Thames RFCC Members are elected representatives from LLFAs. Seven of these represent groups of London boroughs. To fulfill their role RFCC members representing LLFAs should have an understanding of the following: • Who is the lead contact for local flood risk management in each authority they represent • Duties and responsibilities of LLFAs under the Flood and Water Management Act • Progress of the boroughs with respect to their duties and responsibilities under the Act • Key local flood risk issues in each borough that they represent • Business of the local flood risk management partnership • Any potential flood risk schemes that require funding

Forward Look

9. TEC Members will wish to be aware of the following dates: • 16 Oct 2013 - RFCC discuss draft proposals regarding local flood levy in advance of the decision being taken at the 20 November RFCC meeting • 12 Nov 2013 - London Councils’ Leaders’ Committee paper tabled to discuss proposed flood levy payable in 2014/15 by boroughs to the RFCC • 20 Nov 2013 - RFCC levy vote meeting • Early Dec 2013 - Environment Agency publishes London borough surface water drainage risk maps as part of the requirements of the EU Floods Directive and Flood Risk Regulations 2009.

Recommendations

10. TEC Members note progress and discuss what further measures can be taken to encourage uptake of funding by boroughs.

11. TEC Members advise their Council Leaders of the upcoming flood levy vote at Thames Regional Flood and Coastal Committee (RFCC) on the 20 November.

12. TEC Members seek guidance from the Leaders Committee on 12 November to inform RFCC representatives voting at Thames RFCC on the 20 November.

Financial Implications

13. There are no financial implications to London Councils arising from this report.

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(^1) Drain London figures, December 2011 (^2) National Flood Risk Assessment, Environment Agency, 2012. Legal Implications 14. There are no legal implications to London Councils arising from this report.

Equalities Implications 15. There are no equalities implications to London Councils arising from this report. Annex 1 – How to Bid for Funding for Flood Risk Management

Environment Agency, October 2013

1. Assessing risk and identifying need

London boroughs, in their role as flood Risk Management Authorities (RMAs), have a duty to identify the areas at risk from surface water, groundwater and ordinary watercourse flooding, and develop cost effective measures to manage these risks.

Managing flood risk can either be delivered alone or in partnership with other RMAs including other boroughs, water companies and the Environment Agency (EA). The Thames Regional Flood and Coastal Committee (RFCC) would like boroughs to identify more risk mitigation projects to be delivered over the next 20 years.

Over the past five years, boroughs have undertaken a number of activities including preparing Surface Water Management Plans and Local Flood Risk Management Strategies, from which these measures can be identified. This paper outlines options for identifying need and accessing funding.

2. Funding

Flood and coastal risk management is funded through:

- Flood Defence Grant in Aid (FDGiA)
- Local Levy raised by Regional Flood and Coastal Committees (RFCCs)
- Contributions from third parties.

Allocation of funding is administered by the EA on behalf of Defra. To access funding all RMAs are required to submit project proposals, which are then assessed against a series of pre-defined outcome measures. If the outcome measures are favourable, these projects then become part of a prioritised programme of work and are eligible for some FDGiA funding. Locally, the RFCC manages this programme and identifies the opportunities to utilise the local levy to deliver prioritised projects.

3. Applying for funding - the process

A Project Mandate must be completed explaining the problem and outlining possible solutions including a cost-benefit analysis.

RMAs must also complete a Partnership Funding Calculator which evaluates estimated cost against outcomes e.g. whole-life costs and benefits, number of properties with reduced risk and environmental benefits. The partnership score generated determines the amount of FDGiA to be granted. If this does not cover the total cost of the project then additional funding will need to be sought through the local levy or partnership contributions.

Completing the Mandate form and the Calculator serves as an initial feasibility study, but does not guarantee funding or commit a project to proceed. For projects that the RMA wishes to progress, a further investigation and detailed business case will be needed to gain gateway approvals and comply with Defra/EA project principles.

The more detailed elements of project design are usually completed by engineering consultants and are covered within the overall cost of the project. In addition to consultants already on existing local authority procurement frameworks, there is an option to utilise the wider EA Water and Environmental Management Framework. EA can provide further advice.

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3 A blank copy of the Project Mandate is available from the EA contacts listed below. 4 The Partnership Funding Calculator and explanatory notes can be found on the EA website by following this link: http://www.environment-agency.gov.uk/research/planning/122070.aspx 5 More information about the EA’s Water and Environmental Management Framework can be found here: http://www.environment-agency.gov.uk/aboutus/procurement/134976.aspx 4. Summary of process

5. Environment Agency support

The Partnerships and Strategic Overview Teams are able to support the boroughs to identify the evidence needed to complete the forms, both at Project Mandate stage and as it progresses. These teams are split across London and a list of main contacts is provided in Appendix 1.

The teams already work closely with the boroughs at officer level and through the flood risk management partnerships. They have been involved in the development of Local Flood Risk Management Strategies and are familiar with integrated local risks. They have an overview of EA led work within the boroughs and can help facilitate joint working. Representative RFCC members would be expected to maintain an awareness of programme prioritised projects within their area and champion their delivery.

Whilst there is an annual cycle of programme approval, the EA would welcome discussions regarding potential projects at any stage of the financial year. Early engagement leads to a greater likelihood that the quality of evidence needed and understanding of any third-party funding options will result in more-robust bids being submitted.

## Appendix 1 – Environment Agency Contacts

| LLFAs | Flood risk management partnership | Partnership & Strategic Overview Team | PSO Team Leader | EA Area Flood Risk Manager | |-------------------------------|-----------------------------------|---------------------------------------|-----------------|-----------------------------| | LB Hackney | | | | | | LB Enfield | | | | | | LB Waltham Forest | | | | | | LB Tower Hamlets | | | | | | LB Haringey | | | | | | LB Newham | | | | | | LB Lewisham | | | | | | LB Bromley | | | | | | LB Bexley | | | | | | LB Greenwich | | | | | | LB Havering | | | | | | LB Redbridge | | | | | | LB Barking & Dagenham | | | | | | LB Hounslow | | | | | | LB Barnet | | | | | | LB Brent | | | | | | LB Ealing | | | | | | LB Harrow | | | | | | LB Hillingdon | | | | | | LB Southwark | | | | | | LB Lambeth | | | | | | Royal Borough of Kensington & Chelsea | | | | | | LB Camden | | | | | | LB Islington | | | | | | City of London | | | | | | City of Westminster | | | | | | LB Hammersmith & Fulham | | | | | | LB Wandsworth | | | | | | LB Croydon | | | | | | LB Kingston upon Thames | | | | | | LB Merton | | | | | | LB Richmond-upon-Thames | | | | | | LB Sutton | | | | |

| London Lee Valley | Cllr Feryal Demirci | London East | Matt Akers | graham.cowell@environment-agency.gov.uk | | London South East | Cllr Alan Smith | SE London & North Kent | Jack Hayes | mark.douch@environment-agency.gov.uk | | London North East | Cllr Barry Tebbutt | London East | Matt Akers | graham.cowell@environment-agency.gov.uk | | London West | Cllr Dean Cohen | London West | Lee James | graham.cowell@environment-agency.gov.uk | | London Central South | Cllr Barrie Hargrove | SE London & North Kent | Jack Hayes | mark.douch@environment-agency.gov.uk | | London Central North | Cllr Timothy Coleridge | London West | Lee James | graham.cowell@environment-agency.gov.uk | | London South West | Cllr Russell King | South West London & Mole | Sarah Smith | mark.douch@environment-agency.gov.uk |